2015-09-22

New gTLDs Registry Minds+Machines Reports Loss, Hopes for Profit 2016

In a release today, new gTLDs registry operator Minds + Machines Group Limited (domain name: mindsandmachines.com), which trades on the London Stock Exchange under the symbol MMX (LON: MMX), reported a H1 2015 loss of (US$3,695,000) for the 6 month period ending June 30, 2015, compared with a profit of $USD4.9 million for the same period in 2014, primarily due to lower profit from participating in new gTLD (generic top-level domain) auctions. Shares closed today at 8.62 pence which equals USD $0.13. Stockholders have lost money as MMX shares declined over the past year--e.g.,see in chart above 12.00 pence (US$0.19) high in Sept 2014.

Among other highlights reported:

Headcount has been reduced from 58 to 44 even as the sales and marketing teams grew from 2 to 12;

Board committed to achieving its stated goal of crossing over into profitability in 2016;

217,200 domains were under management, representing 3.43% of new gTLD market;

Cash reserves at period end up 2% at $46.9 million from 31 December 2014 reflecting private auctions taking place in period;

Company authorised to purchase up to £15 million of shares in the open market during the next 12 months;

A copy of the unaudited interim accounts is available at www.mindsandmachines.com.

According to the company, Minds + Machines operates three distinct business lines: the registry, through which it is a major owner of generic top-level domains ("gTLDs"); the registry service provider, whose technology powers the top-level domains of MMX and its clients; the registrar, which provides an additional distribution channel through which the Company can target specific vertical markets.